Startup India Registration

Startup India Initiative

The Government of India through its flagship "Startup India Initiative" is encouraging more and more Private Limited Companies and LLPs to get themselves recognized under the scheme that fulfill certain criteria's.

Once you get your Certificate of Recognition by DPIIT, GOI, numerous benefits and opportunities are awaiting your way.

What are Startup Benefits?

REBATE IN TRADEMARK AND PATENT APPLICATION FEES
Fast-tracking of Startup patent applications, Panel of facilitators to assist in filing of IP applications, up to 80% rebate in filing patents and 50% rebate in filing Trademarks.
 
SELF CERTIFICATION
Self-compliance under 6 Labour and 3 Environment laws for a period of 5 years from the date of incorporation.
 
EASIER PUBLIC PROCUREMENT
Benefit from exemption on Prior Turnover and Experience, submitting Earnest Money Deposit (EMD) or bid security while filling government tenders.
 
INTERACTIVE PLATFORM FOR STARTUPS
Participate in different opportunities, challenges and summits organized by Government through the Startup India portal. Get listed as Sellers on the Government of India’s largest e-procurement portal (GEM)
 
FUND OF FUNDS FOR STARTUPS
Corpus fund of 10,000 crores managed by SIDBI. The Fund is in the nature of Fund of Funds, which means that the Government participates in the capital of SEBI registered Venture Funds, who further invest in Startups.
 
ANGEL TAX EXEMPTION
Post getting recognition a Startup may apply for Angel Tax Exemption for investment at Premium under Section 56 of the Income Tax Act, 1961.
 
TAX EXEMPTION*
The entity registered under the Startup India Scheme can apply for an exemption of income tax for 3 consecutive financial years out of first 7 years from the date of incorporation under section 80 IAC of the Income Tax Act,1961.

What are the Different Types of Entities that can obtain Startup Business Registration?

The government of India has not put any boundaries on which type of entities can register as a startup:

1. Private Limited Companies: Private Limited Companies are the most popular business entities in India – suitable for all types of enterprise. Since most entrepreneurs incline to get their business registered as a company in India, the government allows them to start a startup company in India.

2. Limited Liability Partnerships: Many wonder about the answer to the question – how to register LLP in startup India. The answer is – same as how you would register your company as a startup. Startup registration process has less to do with the business infrastructure and more to do with answering a certain set of questions.

3. One Person Company: In rare cases, One Person Companies can also be registered as a startup in India. However, such business entities must be extraordinarily innovative.

4. Partnership Firm: A partnership firm is a business entity incorporated under the Partnership Act, 1932. If your partnership firm has an innovative business, you can obtain startup firm registration in India.

5. Producer Company: Producer company can register their business as Indian startups. Since agricultural sector is a major contributor to our GDP, the government grants startup registration to a producer company without much hassle.

6. Public Limited Company: Public limited company can also be counted as the candidate for startup India initiative, provided they get registered in their early days.

7. Nidhi Company: Nidhi Company also have the permit to obtain the startup registration certificate in India.

Startup India registration for a proprietorship is not possible because the entity is not registered under any government regulation. Thus, if you have a sole proprietorship firm that you want to incorporate as a startup, contact us to convert it into a One Person Company.

Eligibility Criteria

• You should be a new startup company: Startup company formation is not possible for old business entities.  The applicant business entity must be registered or incorporated in India for less than 7 years. If your business is older, you will not be considered as a startup as far as the government of India is concerned.
• Your current turnover shouldn’t exceed INR 25 Crore: The current annual turnover of the applicant’s business entity should not be more than INR 25 Crore. If the annual turnover of your company is more than this figure then you are considered far beyond a startup and thus are not considered suitable for its perks.  
• Your business should be an innovative one: The objective of the applicant’s business entity should be aimed toward the development, innovation, deployment, and commercialization of new products, and services that are driven by new technology or IP. Too many companies attempt to get their startups registered in India without a second thought to innovation. That’s wrong, wastes the time of the inter-ministerial board setup, and can ruin your chances to get startup company registration in India.
• You must first obtain the certificate from the inter-ministerial board: The applicant should have obtained certification from Inter-Ministerial Board Setup.

Documents Requirement

• PAN Card: PAN card (Permanent Account Number) is a card that connects an individual to their financial data. Therefore, it is one of the most important documents for startup business registration.
• ID Proof: All the directors of the company, partnership of an LLP or Partnership firms must provide their identity proof.
• Address proof of the directors of the company: Address Proof in the name of the director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)
• Photo IDs of the directors/partners: 4 Passport Size Photographs. Make sure that none of those photographs are signed.
• Address proof of Registered office: Provide a rent agreement copy if the registered office is rented space. Or, provide a sales agreement copy if you own the space that acts as a registered office.
• Any utility bills to further reinforce the address proof of your registered office: Any utility Bill (i.e., mobile bill/water bill/ electricity bill) of the registered office
• Director details: Minimum 2 Directors details for a Pvt Ltd Company are required. You must make sure that the details are thorough.
• Shareholder Details of the company: Provide details of at least two Shareholders of the Pvt. Ltd. Company or Limited Liability Partnership.
• Details of a One Person Company: For a One Person company. Minimum 1 Shareholder & 1 Nominee is a requirement. Therefore, you must present the details of the same.

MSME certificate: For MSME startup registration, a copy of the MSME certificate – now known as the Udyog Aadhar Certificate is also a requirement.

Process of Startup Registration

• Incorporate your business: To be recognized as a startup, your business first needs a structure. Therefore, your first order or business must be to incorporate your business in India as soon as possible.
• Gather the required documents for startup registration: Furnish all the requirements in a digital format because the startup registration procedure is online.
• Visit the website and create your login ID: Go to startup India website and create an ID for your company, partnership, or Limited Liability Partnership.
• Answer the four major questions about your startup:
  • Problem that your startup is trying to solve? In this question, you have to clearly state about the problem your company is trying to deal with, you have to make sure that every detail you provide should exist within the realm of possibilities.
  • What is your solution to solving that problem? Provide all the possible solutions your startup has come up with to deal with the issues.
  • How is the solution you’re providing is unique? What separates your solutions from the rest. Be as unique as possible. If your answer has integrity, it will be accepted even if there is a
  • How your business is going to generate revenue: Provide specifications about how your startup is going to generate revenue.
• Apply for startup India Certificate
• Get startup Registration certificate or authorization letter for startup India.

The procedure to start a startup in India, even though simplistic, need the assistance of the right business registration experts in India. And for that, Registrationwala is here to deliver.